INDIANAPOLIS, Aug. 1, 2017 /PRNewswire/ -- Simon, a global
leader in premier shopping, dining and entertainment destinations,
today reported results for the quarter ended June 30, 2017.
Results for the Quarter1
- Net income attributable to common stockholders was $382.0 million, or $1.23 per diluted share, as compared to
$455.4 million, or $1.45 per diluted share, in the prior year
period. Results for the second quarter of 2017 include a
charge of $128.6 million or
$0.36 per diluted share related to
the redemption of certain senior notes of Simon Property Group,
L.P.
- Funds from Operations ("FFO") was $884.7
million, or $2.47 per diluted
share, as compared to $952.9 million,
or $2.63 per diluted share, in the
prior year period. The second quarter 2017 results include
the $0.36 per diluted share charge on
the extinguishment of debt.
- Growth in comparable FFO per diluted share for the three months
ended June 30, 2017 was 7.6%.
Results for the Six Months1
- Net income attributable to common stockholders was $859.7 million, or $2.75 per diluted share, as compared to
$936.4 million, or $3.01 per diluted share, in the prior year
period. Results for the six months ended 2017 include the
$0.36 per diluted share charge on the
extinguishment of debt. The 2016 results include higher gains
related to acquisition and disposition activity of $21.9 million, or $0.06 per diluted share.
- FFO was $1.870 billion, or
$5.20 per diluted share, as compared
to $1.905 billion, or $5.27 per diluted share, in the prior year
period. FFO for the six months ended 2017 includes the
aforementioned charge on the extinguishment of debt.
- Growth in comparable FFO per diluted share for the six months
ended June 30, 2017 was 5.5%.
"We produced impressive second quarter results and solid
operating metrics," said David
Simon, Chairman and Chief Executive Officer. "It was a
very eventful quarter with the completion of the multi-year
transformation of The Galleria in Houston and the opening of four new outlets,
including three international centers, as well as the
groundbreaking of a new Premium Outlets center in Denver.
Today, we raised our quarterly dividend and increased our full-year
2017 guidance."
U.S. Malls and Premium Outlets Operating Statistics
- Occupancy was 95.2% at June 30,
2017.
- Base minimum rent per square foot was $52.10 at June 30,
2017, an increase of 3.3% compared to the prior year
period.
- Leasing spread per square foot for the trailing 12-months ended
June 30, 2017 was $8.13, an increase of 12.9%.
Portfolio Net Operating Income ("NOI") and Comparable
Property NOI
Total portfolio NOI growth for the three months ended
June 30, 2017 was 5.0% and was 5.3%
for the six months ended June 30,
2017. Total portfolio NOI includes comparable property NOI,
NOI from new development, redevelopment, expansion and
acquisitions, NOI from international properties and our share of
NOI from investments. Comparable property NOI growth for the
three months ended June 30, 2017 was
4.4% and was 4.1% for the six months ended June 30, 2017.
Dividends
Today, Simon's Board of Directors declared a quarterly common
stock dividend of $1.80 per
share. This is a 9.1% increase year-over-year. The
dividend will be payable on August 31,
2017 to stockholders of record on August 17, 2017.
Simon's Board of Directors also declared the quarterly dividend
on its 8 3/8% Series J Cumulative Redeemable Preferred Stock (NYSE:
SPGPrJ) of $1.046875 per share,
payable on September 29, 2017 to
stockholders of record on September
15, 2017.
Development Activity
During the quarter, we opened four new outlet
developments.
- On April 6th, we
opened Siheung Premium Outlets, in Siheung (Seoul), South
Korea, a 444,000 square foot center offering more than 200
domestic and international brands. Siheung Premium Outlets is
our fourth outlet center in South Korea. Simon owns a 50%
interest in this center.
- On April 13th, we
opened Provence Designer Outlet, in Provence, France. This
269,000 square foot center offers more than 100 high-quality,
name-brand stores and is the first designer outlet in the South of
France. Simon owns a 90% interest in this center.
- On June 15th, we
opened Genting Highlands Premium Outlets (Kuala Lumpur, Malaysia), a 278,000 square foot
center featuring over 130 designers and name-brand stores.
Genting Highlands Premium Outlets is our second outlet center in
Malaysia. Simon owns a 50% interest in this
center.
- On June 29th, we
opened Norfolk Premium Outlets (Norfolk,
Virginia) a 332,000 square foot center featuring
high-quality, name brand stores in a village style setting.
Simon owns a 65% interest in this center.
Construction continues on two other new development
projects:
- The Shops at Clearfork
(Fort Worth, Texas); scheduled to
open in September 2017. Simon owns a 45% interest in this
project.
- Premium Outlet Collection Edmonton IA (Edmonton, Alberta, Canada); scheduled to open
in May 2018. Simon owns a 50% interest in this project.
Construction also continues on significant redevelopment and
expansion projects at properties including La Plaza Mall, The Shops
at Riverside, Aventura Mall, Allen
Premium Outlets and Toronto Premium Outlets.
At quarter-end, redevelopment and expansion projects, including
the addition of new anchors, were underway at 25 properties in the
U.S. and Canada. Simon's share of the costs of all new
development and redevelopment projects under construction at
quarter-end was approximately $1.3
billion.
During the second quarter, construction started on a 328,000
square foot upscale outlet center located in Thornton (Denver), Colorado, projected to open in September
2018. Simon owns 100% of this project.
Financing Activity
The Company was active in both the unsecured and secured credit
markets in the second quarter, continuing to lower our effective
borrowing costs.
The Company completed a dual tranche senior notes offering
totaling $1.35 billion with a
weighted average coupon rate of 3.04% and weighted average term of
7.8 years.
During the quarter, the Company retired two series of senior
notes totaling $1.85 billion with a
weighted average coupon rate of 4.51%. The new notes offering
had a weighted average coupon rate approximately 150 basis points
lower than the notes that were retired during the
quarter.
Also during the quarter, the Company closed on six mortgage
loans, including three mortgages on international properties,
totaling approximately $1.1 billion
(U.S. dollar equivalent), of which Simon's share is $573 million. The weighted average interest
rate and weighted average term on these loans is 3.48% and 8.0
years, respectively.
As of June 30, 2017, Simon had
approximately $6.5 billion of
liquidity consisting of cash on hand, including its share of joint
venture cash, and available capacity under its revolving credit
facilities.
Common Stock Repurchase Program
During the quarter
ended June 30, 2017, the Company
repurchased 1,528,359 shares of its common stock.
2017 Guidance
The Company currently estimates net income to be within a range
of $6.20 to $6.28 per diluted share
for the year ending December 31, 2017
and that FFO will be within a range of $11.14 to $11.22 per diluted share. This
represents an increase of $0.04 per
diluted share from the midpoint of the range provided on
April 27, 2017, after giving
effect to the $0.36 per diluted share
charge on the extinguishment of debt.
The following table provides the reconciliation for the expected
range of estimated net income available to common stockholders per
diluted share to estimated FFO per diluted share:
For the year ending
December 31, 2017
|
|
|
|
|
Low
|
|
High
|
|
End
|
|
End
|
Estimated net income
available to common stockholders
per diluted share
|
$6.20
|
|
$6.28
|
Depreciation and
amortization including Simon's share
of unconsolidated entities
|
4.95
|
|
4.95
|
Gain upon acquisition
of controlling interest, sale or disposal
of assets and interest in
unconsolidated entities, net
|
(0.01)
|
|
(0.01)
|
|
|
|
|
Estimated FFO per
diluted share
|
$11.14
|
|
$11.22
|
Conference Call
Simon will hold a conference call to discuss the quarterly
financial results today at 10:00 a.m.
Eastern Time, Tuesday, August
1, 2017. A live webcast of the conference call will be
accessible in listen-only mode at investors.simon.com. An
audio replay of the conference call will be available until
August 8, 2017. To access the
audio replay, dial 1-855-859-2056 (international 404-537-3406)
passcode 39989308.
Supplemental Materials and Website
Supplemental information on our second quarter 2017 performance
is available at investors.simon.com. This information has also been
furnished to the SEC in a current report on Form 8-K.
We routinely post important information online at our investor
relations website, investors.simon.com. We use this website, press
releases, SEC filings, quarterly conference calls, presentations
and webcasts to disclose material, non-public information in
accordance with Regulation FD. We encourage members of the
investment community to monitor these distribution channels for
material disclosures. Any information accessed through our
website is not incorporated by reference into, and is not a part
of, this document.
Non-GAAP Financial Measures
This press release includes FFO, FFO per share, comparable FFO
per share, comparable earnings per share, portfolio net operating
income growth and comparable property net operating income growth,
which are financial performance measures not defined by generally
accepted accounting principles in the
United States ("GAAP"). Reconciliations of these non-GAAP
financial measures to the most directly comparable GAAP measures
are included in this press release and in Simon's supplemental
information for the quarter. FFO and comparable property net
operating income growth are financial performance measures widely
used in the REIT industry. Our definitions of these non-GAAP
measures may not be the same as similar measures reported by other
REITs.
Forward-Looking Statements
Certain statements made in this press release may be deemed
"forward‑looking statements" within the meaning of the Private
Securities Litigation Reform Act of 1995. Although the Company
believes the expectations reflected in any forward‑looking
statements are based on reasonable assumptions, the Company can
give no assurance that its expectations will be attained, and it is
possible that the Company's actual results may differ materially
from those indicated by these forward‑looking statements due to a
variety of risks, uncertainties and other factors. Such factors
include, but are not limited to: changes in economic and market
conditions that adversely affect the general retail environment;
the potential loss of anchor stores or major tenants; the inability
to collect rent due to the bankruptcy or insolvency of tenants or
otherwise; decreases in market rental rates; the intensely
competitive market environment in the retail industry; the
inability to lease newly developed properties and renew leases and
relet space at existing properties on favorable terms; risks
related to international activities, including, without limitation,
the impact of the United Kingdom's
vote to leave the European Union; changes to applicable laws or
regulations or the interpretation thereof; risks associated with
the acquisition, development, redevelopment, expansion, leasing and
management of properties; general risks related to real estate
investments, including the illiquidity of real estate investments;
the impact of our substantial indebtedness on our future
operations; any disruption in the financial markets that adversely
affects our ability to access capital for growth and satisfy our
ongoing debt service requirements; any change in our credit rating;
changes in market rates of interest and foreign exchange rates for
foreign currencies; changes in the value of our investments in
foreign entities; our ability to hedge interest rate and currency
risk; our continued ability to maintain our status as a REIT;
changes in tax laws or regulations that result in adverse tax
consequences; risks relating to our joint venture properties;
environmental liabilities; changes in insurance costs, the
availability of comprehensive insurance coverage; security breaches
that could compromise our information technology or infrastructure;
natural disasters; the potential for terrorist activities; and the
loss of key management personnel. The Company discusses these and
other risks and uncertainties under the heading "Risk Factors" in
its annual and quarterly periodic reports filed with the SEC.
The Company may update that discussion in its periodic reports, but
except as required by law, the Company undertakes no duty or
obligation to update or revise these forward-looking statements,
whether as a result of new information, future developments, or
otherwise.
About Simon
Simon is a global leader in the ownership
of premier shopping, dining, entertainment and mixed-use
destinations and an S&P 100 company (Simon Property Group,
NYSE: SPG). Our properties across North
America, Europe and
Asia provide community gathering
places for millions of people every day and generate billions in
annual sales. For more information, visit simon.com.
1 For a reconciliation of FFO and net income per
diluted share on a comparable basis, please see Footnote H of the
Footnotes to Unaudited Financial Information.
Simon Property
Group, Inc.
Unaudited
Consolidated Statements of Operations
(Dollars in thousands, except per share
amounts)
|
|
|
|
For the Three
Months
|
|
For the Six
Months
|
|
Ended June
30,
|
|
Ended June
30,
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Minimum
rent
|
$
851,552
|
$ 822,224
|
|
$
1,698,350
|
$
1,640,760
|
Overage
rent
|
29,764
|
31,250
|
|
57,967
|
60,167
|
Tenant
reimbursements
|
380,527
|
367,062
|
|
759,442
|
738,676
|
Management fees and
other revenues
|
31,367
|
34,478
|
|
61,914
|
67,878
|
Other
income
|
68,338
|
60,366
|
|
129,638
|
144,614
|
Total
revenue
|
1,361,548
|
1,315,380
|
|
2,707,311
|
2,652,095
|
|
|
|
|
|
|
EXPENSES:
|
|
|
|
|
|
Property
operating
|
107,371
|
104,756
|
|
211,419
|
207,817
|
Depreciation and
amortization
|
322,396
|
303,585
|
|
633,228
|
604,199
|
Real estate
taxes
|
113,415
|
107,505
|
|
220,073
|
216,929
|
Repairs and
maintenance
|
21,700
|
22,842
|
|
47,301
|
48,907
|
Advertising and
promotion
|
36,496
|
33,172
|
|
72,444
|
68,210
|
Provision for credit
losses
|
2,659
|
4,944
|
|
7,870
|
8,608
|
Home and regional
office costs
|
36,476
|
40,326
|
|
79,455
|
78,933
|
General and
administrative
|
13,074
|
15,125
|
|
27,075
|
29,989
|
Other
|
21,812
|
23,889
|
|
45,627
|
44,366
|
Total operating
expenses
|
675,399
|
656,144
|
|
1,344,492
|
1,307,958
|
|
|
|
|
|
|
OPERATING
INCOME
|
686,149
|
659,236
|
|
1,362,819
|
1,344,137
|
|
|
|
|
|
|
Interest
expense
|
(207,174)
|
(213,995)
|
|
(405,373)
|
(433,185)
|
Loss on
extinguishment of debt
|
(128,618)
|
-
|
|
(128,618)
|
-
|
Income and other
taxes
|
(5,990)
|
(7,115)
|
|
(2,470)
|
(22,301)
|
Income from
unconsolidated entities
|
92,017
|
84,990
|
|
161,101
|
175,616
|
Gain upon acquisition
of controlling interests and sale or disposal of assets
|
|
|
|
|
|
and interests
in unconsolidated entities, net
|
4,989
|
4,209
|
|
4,989
|
26,897
|
|
|
|
|
|
|
CONSOLIDATED NET
INCOME
|
441,373
|
527,325
|
|
992,448
|
1,091,164
|
|
|
|
|
|
|
Net income
attributable to noncontrolling interests
|
58,549
|
71,102
|
|
131,053
|
153,111
|
Preferred
dividends
|
834
|
834
|
|
1,669
|
1,669
|
|
|
|
|
|
|
NET INCOME
ATTRIBUTABLE TO COMMON STOCKHOLDERS
|
$
381,990
|
$ 455,389
|
|
$
859,726
|
$ 936,384
|
|
|
|
|
|
|
|
|
|
|
|
|
BASIC AND DILUTED
EARNINGS PER COMMON SHARE:
|
|
|
|
|
|
Net income
attributable to common stockholders
|
$
1.23
|
$ 1.45
|
|
$
2.75
|
$ 3.01
|
|
|
|
|
|
|
|
|
|
|
|
|
Simon Property
Group, Inc.
Unaudited
Consolidated Balance Sheets
(Dollars in thousands, except share
amounts)
|
|
|
June
30,
|
December
31,
|
|
2017
|
2016
|
ASSETS:
|
|
|
Investment
properties, at cost
|
$
35,695,397
|
$
35,226,089
|
Less - accumulated
depreciation
|
11,378,345
|
10,865,754
|
|
24,317,052
|
24,360,335
|
Cash and cash
equivalents
|
488,614
|
560,059
|
Tenant receivables
and accrued revenue, net
|
640,080
|
664,619
|
Investment in
unconsolidated entities, at equity
|
2,321,111
|
2,367,583
|
Investment in
Klépierre, at equity
|
1,830,484
|
1,797,394
|
Deferred costs and
other assets
|
1,368,625
|
1,353,588
|
Total
assets
|
$
30,965,966
|
$
31,103,578
|
|
|
|
LIABILITIES:
|
|
|
Mortgages and
unsecured indebtedness
|
$
23,422,685
|
$
22,977,104
|
Accounts payable,
accrued expenses, intangibles, and deferred revenues
|
1,205,267
|
1,214,022
|
Cash distributions
and losses in partnerships and joint ventures, at equity
|
1,370,333
|
1,359,738
|
Other
liabilities
|
492,143
|
455,040
|
Total
liabilities
|
26,490,428
|
26,005,904
|
|
|
|
Commitments and
contingencies
|
|
|
Limited partners'
preferred interest in the Operating Partnership and
noncontrolling
|
|
|
redeemable interests
in properties
|
184,379
|
137,762
|
|
|
|
EQUITY:
|
|
|
Stockholders'
Equity
|
|
|
Capital stock
(850,000,000 total shares authorized, $ 0.0001 par value,
238,000,000
|
|
|
shares of excess
common stock, 100,000,000 authorized shares of preferred
stock):
|
|
|
|
|
|
Series J 8 3/8%
cumulative redeemable preferred stock, 1,000,000 shares
authorized,
|
|
|
796,948 issued and
outstanding with a liquidation value of $39,847
|
43,241
|
43,405
|
|
|
|
Common stock, $
0.0001 par value, 511,990,000 shares authorized, 319,929,605
and
|
|
|
319,823,322 issued
and outstanding, respectively
|
32
|
32
|
|
|
|
Class B common stock,
$ 0.0001 par value, 10,000 shares authorized, 8,000
|
|
|
issued and
outstanding
|
-
|
-
|
|
|
|
Capital in excess of
par value
|
9,587,026
|
9,523,086
|
Accumulated
deficit
|
(4,731,402)
|
(4,459,387)
|
Accumulated other
comprehensive loss
|
(103,872)
|
(114,126)
|
Common stock held in
treasury, at cost, 9,094,827 and 6,756,748 shares,
respectively
|
(1,068,310)
|
(682,562)
|
Total stockholders'
equity
|
3,726,715
|
4,310,448
|
Noncontrolling
interests
|
564,444
|
649,464
|
Total
equity
|
4,291,159
|
4,959,912
|
Total liabilities
and equity
|
$
30,965,966
|
$
31,103,578
|
|
|
|
Simon Property
Group, Inc.
Unaudited Joint
Venture Combined Statements of Operations
(Dollars in thousands)
|
|
|
For the Three Months
Ended
June 30,
|
|
For the Six Months
Ended
June 30,
|
|
2017
|
2016
|
|
2017
|
2016
|
|
|
|
|
|
|
REVENUE:
|
|
|
|
|
|
Minimum
rent
|
$
465,705
|
$ 458,267
|
|
$
916,760
|
$ 897,114
|
Overage
rent
|
46,447
|
46,903
|
|
97,816
|
96,527
|
Tenant
reimbursements
|
212,465
|
212,265
|
|
428,246
|
423,206
|
Other
income
|
71,753
|
54,806
|
|
136,079
|
113,486
|
Total
revenue
|
796,370
|
772,241
|
|
1,578,901
|
1,530,333
|
|
|
|
|
|
|
OPERATING
EXPENSES:
|
|
|
|
|
|
Property
operating
|
132,028
|
131,413
|
|
265,013
|
262,494
|
Depreciation and
amortization
|
159,748
|
149,721
|
|
313,202
|
281,200
|
Real estate
taxes
|
63,977
|
59,429
|
|
130,560
|
120,938
|
Repairs and
maintenance
|
20,471
|
18,480
|
|
40,701
|
38,234
|
Advertising and
promotion
|
21,836
|
20,777
|
|
44,034
|
43,306
|
Provision for credit
losses
|
2,789
|
2,885
|
|
6,566
|
5,574
|
Other
|
45,030
|
43,625
|
|
88,384
|
88,679
|
Total operating
expenses
|
445,879
|
426,330
|
|
888,460
|
840,425
|
|
|
|
|
|
|
OPERATING
INCOME
|
350,491
|
345,911
|
|
690,441
|
689,908
|
|
|
|
|
|
|
Interest
expense
|
(146,440)
|
(151,022)
|
|
(288,647)
|
(294,781)
|
Gain on sale or
disposal of assets and interests in unconsolidated
entities
|
-
|
6,049
|
|
-
|
60,522
|
|
|
|
|
|
|
NET
INCOME
|
$
204,051
|
$ 200,938
|
|
$
401,794
|
$ 455,649
|
|
|
|
|
|
|
Third-Party
Investors' Share of Net Income
|
$
104,265
|
$ 100,391
|
|
$
203,950
|
$ 219,200
|
|
|
|
|
|
|
Our Share of Net
Income
|
99,786
|
100,547
|
|
197,844
|
236,449
|
Amortization of
Excess Investment (A)
|
(22,979)
|
(25,558)
|
|
(45,436)
|
(48,770)
|
Our Share of Gain
on Sale or Disposal of Assets and
|
|
|
|
|
|
Interests in
Unconsolidated Entities, net
|
-
|
(2,487)
|
|
-
|
(2,487)
|
Our Share of Gain
on Sale or Disposal of Assets and
|
|
|
|
|
|
Interests
Included in Other Income in the Consolidated Financial
Statements
|
-
|
-
|
|
-
|
(36,153)
|
Income from
Unconsolidated Entities (B)
|
$
76,807
|
$ 72,502
|
|
$
152,408
|
$ 149,039
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre S.A.
|
("Klépierre")
and HBS Global Properties ("HBS"). For additional information, see
footnote B.
|
Simon Property
Group, Inc.
|
Unaudited Joint
Venture Combined Balance Sheets
|
(Dollars in
thousands)
|
|
|
|
|
|
|
|
|
|
|
|
June
30,
|
December
31,
|
|
2017
|
2016
|
Assets:
|
|
|
Investment
properties, at cost
|
$
18,043,831
|
$
17,549,078
|
Less - accumulated
depreciation
|
6,129,070
|
5,892,960
|
|
11,914,761
|
11,656,118
|
Cash and cash
equivalents
|
837,136
|
778,455
|
Tenant receivables
and accrued revenue, net
|
346,648
|
348,139
|
Deferred costs and
other assets
|
400,775
|
351,098
|
Total
assets
|
$
13,499,320
|
$
13,133,810
|
|
|
|
Liabilities and
Partners' Deficit:
|
|
|
Mortgages
|
$
14,522,493
|
$
14,237,576
|
Accounts payable,
accrued expenses, intangibles, and deferred revenue
|
900,784
|
867,003
|
Other
liabilities
|
357,639
|
325,078
|
Total
liabilities
|
15,780,916
|
15,429,657
|
|
|
|
Preferred
units
|
67,450
|
67,450
|
Partners'
deficit
|
(2,349,046)
|
(2,363,297)
|
Total liabilities and
partners' deficit
|
$
13,499,320
|
$
13,133,810
|
|
|
|
Our Share
of:
|
|
|
Partners'
deficit
|
$
(1,061,589)
|
$
(1,018,755)
|
Add: Excess
Investment (A)
|
1,778,885
|
1,791,691
|
Our net Investment in
unconsolidated entities, at equity
|
$
717,296
|
$ 772,936
|
|
Note: The above
financial presentation does not include any information related to
our investments in Klépierre and
|
HBS Global Properties. For additional information, see footnote
B.
|
|
|
|
|
|
|
|
|
|
|
|
|
Simon Property
Group, Inc.
|
Unaudited
Reconciliation of Non-GAAP Financial Measures (C)
|
(Amounts in
thousands, except per share amounts)
|
|
|
|
|
|
|
|
|
|
|
|
|
Reconciliation of
Consolidated Net Income to FFO
|
|
|
|
|
|
|
|
|
|
|
|
|
|
For the Three
Months Ended
|
|
For the Six Months
Ended
|
|
|
|
|
|
June
30,
|
|
June
30,
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
|
|
|
|
|
|
Consolidated Net
Income (D)
|
|
$
441,373
|
|
$
527,325
|
|
$
992,448
|
|
$
1,091,164
|
Adjustments to
Arrive at FFO:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Depreciation and
amortization from consolidated
|
|
|
|
|
|
|
|
|
properties
|
|
|
318,585
|
|
300,179
|
|
626,273
|
|
597,376
|
|
Our share of
depreciation and amortization from
|
|
|
|
|
|
|
|
|
unconsolidated entities,
including Klépierre and HBS
|
135,476
|
|
134,893
|
|
266,694
|
|
253,135
|
|
Gain upon acquisition
of controlling interests and sale or disposal
|
|
|
|
|
|
|
|
|
of assets and interests in
unconsolidated entities, net
|
(4,989)
|
|
(4,209)
|
|
(4,989)
|
|
(26,897)
|
|
Net (income) loss
attributable to noncontrolling interest holders in
|
|
|
|
|
|
|
|
|
properties
|
|
|
(74)
|
|
(565)
|
|
170
|
|
(1,294)
|
|
Noncontrolling
interests portion of depreciation and amortization
|
(4,315)
|
|
(3,439)
|
|
(8,215)
|
|
(6,155)
|
|
Preferred
distributions and dividends
|
(1,313)
|
|
(1,313)
|
|
(2,626)
|
|
(2,626)
|
FFO of the
Operating Partnership (E)
|
$
884,743
|
|
$
952,871
|
|
$
1,869,755
|
|
$
1,904,703
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Diluted net income
per share to diluted FFO per share reconciliation:
|
|
|
|
|
|
|
|
Diluted net income
per share
|
|
$
1.23
|
|
$
1.45
|
|
$
2.75
|
|
$
3.01
|
|
Depreciation and
amortization from consolidated properties
|
|
|
|
|
|
|
|
|
and our share of
depreciation and amortization from unconsolidated
|
|
|
|
|
|
|
|
|
entities, including
Klépierre and HBS, net of noncontrolling
|
|
|
|
|
|
|
|
|
interests portion of
depreciation and amortization
|
1.25
|
|
1.19
|
|
2.46
|
|
2.33
|
|
Gain upon acquisition
of controlling interests and sale or disposal
|
|
|
|
|
|
|
|
|
of assets and interests in
unconsolidated entities, net
|
(0.01)
|
|
(0.01)
|
|
(0.01)
|
|
(0.07)
|
Diluted FFO per
share (F)
|
|
$
2.47
|
|
$
2.63
|
|
$
5.20
|
|
$
5.27
|
|
|
|
|
|
|
|
|
|
|
|
|
Details for per share
calculations:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
FFO of the Operating
Partnership (E)
|
$
884,743
|
|
$
952,871
|
|
$
1,869,755
|
|
$
1,904,703
|
Diluted FFO allocable
to unitholders
|
(116,599)
|
|
(127,386)
|
|
(246,028)
|
|
(264,285)
|
Diluted FFO allocable
to common stockholders (G)
|
$
768,144
|
|
$
825,485
|
|
$
1,623,727
|
|
$
1,640,418
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares outstanding
|
311,579
|
|
313,399
|
|
312,191
|
|
311,408
|
Weighted average
limited partnership units outstanding
|
47,287
|
|
48,363
|
|
47,304
|
|
50,170
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted
weighted average shares and units outstanding
|
358,866
|
|
361,762
|
|
359,495
|
|
361,578
|
|
|
|
|
|
|
|
|
|
|
|
|
Basic and Diluted FFO
per Share (F)
|
$
2.47
|
|
$
2.63
|
|
$
5.20
|
|
$
5.27
|
Percent Change
|
|
|
-6.1%
|
|
|
|
-1.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Simon Property
Group, Inc.
|
Footnotes to
Unaudited Financial Information
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Notes:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(A)
|
Excess investment
represents the unamortized difference of our investment over equity
in the underlying net assets of the related partnerships and joint
ventures shown therein. The Company generally amortizes
excess investment over the life of the related
properties.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(B)
|
The Unaudited Joint
Venture Combined Statements of Operations do not include any
operations or our share of net income or excess investment
amortization related to our investments in Klépierre and HBS Global
Properties. Amounts included in Footnote D below exclude our
share of related activity for our investments in Klépierre and HBS
Global Properties. For further information on Klépierre,
reference should be made to financial information in Klépierre's
public filings and additional discussion and analysis in our Form
10-Q.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(C)
|
This report contains
measures of financial or operating performance that are not
specifically defined by GAAP, including FFO, FFO per share,
comparable FFO per share and comparable EPS. FFO is a
performance measure that is standard in the REIT business. We
believe FFO provides investors with additional information
concerning our operating performance and a basis to compare our
performance with those of other REITs. We also use these
measures internally to monitor the operating performance of our
portfolio. Our computation of these non-GAAP measures may not be
the same as similar measures reported by other REITs.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We determine FFO
based upon the definition set forth by the National Association of
Real Estate Investment Trusts ("NAREIT"). We determine FFO to be
our share of consolidated net income computed in accordance with
GAAP, excluding real estate related depreciation and amortization,
excluding gains and losses from extraordinary items, excluding
gains and losses from the sales or disposals of, or any impairment
charges related to, previously depreciated retail operating
properties, plus the allocable portion of FFO of unconsolidated
joint ventures based upon economic ownership interest, and all
determined on a consistent basis in accordance with
GAAP.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
We have adopted
NAREIT's clarification of the definition of FFO that requires it to
include the effects of nonrecurring items not classified as
extraordinary, cumulative effect of accounting changes, or a gain
or loss resulting from the sale or disposal of, or any impairment
charges relating to, previously depreciated retail operating
properties. We include in FFO gains and losses realized from the
sale of land, outlot buildings, marketable and non-marketable
securities, and investment holdings of non-retail real estate.
However, you should understand that FFO does not represent cash
flow from operations as defined by GAAP, should not be considered
as an alternative to net income determined in accordance with GAAP
as a measure of operating performance, and is not an alternative to
cash flows as a measure of liquidity.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(D)
|
Includes our share
of:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Gains on land sales
of $5.0 million and $0.5 million for the three months ended June
30, 2017 and 2016, respectively, and $7.7 million and $2.2 million
for the six months ended June 30, 2017 and 2016,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Straight-line
adjustments increased minimum rent by $5.1 million and $15.9
million for the three months ended June 30, 2017 and 2016,
respectively, and $15.3 million and $31.0 million for the six
months ended June 30, 2017 and 2016,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
-
|
Amortization of fair
market value of leases from acquisitions increased income by $1.5
million and $2.2 million for the three months ended June 30, 2017
and 2016, respectively, and $3.2 million and $4.8 million for the
six months ended June 30, 2017 and 2016,
respectively.
|
|
|
-
|
Debt premium
amortization of $0.0 million and $3.8 million for the three months
ended June 30, 2017 and 2016, respectively, and $0.1 million and
$8.0 million for the six months ended June 30, 2017 and 2016,
respectively.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(E)
|
Includes a loss on
the extinguishment of debt of $128.6 million for the three and six
months ended June 30, 2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(F)
|
Includes Basic and
Diluted FFO per share related to a loss on the extinguishment of
debt of $0.36 for the three and six months ended June 30,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(G)
|
Includes Diluted FFO
allocable to common stockholders related to a loss on the
extinguishment of debt of $111.7 million for the three and
six
months ended June 30,
2017.
|
|
|
|
|
|
|
|
|
|
|
|
|
|
(H)
|
Reconciliation of
reported earnings per share to comparable earnings per share and
FFO per share to comparable FFO per share:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
|
|
SIX
MONTHS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENDED
|
|
ENDED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JUNE
30,
|
|
JUNE
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Reported earnings per
share
|
|
|
|
|
|
|
|
$
1.23
|
|
$
1.45
|
|
$
2.75
|
|
$
3.01
|
|
|
|
|
|
|
Add: Loss on
extinguishment of debt
|
|
|
|
|
|
|
|
0.36
|
|
-
|
|
0.36
|
|
-
|
|
|
|
|
|
|
Comparable earnings
per share
|
|
|
|
|
|
|
|
$
1.59
|
|
$
1.45
|
|
$
3.11
|
|
$
3.01
|
|
|
|
|
|
|
Comparable earnings
per share growth
|
|
|
|
|
|
|
|
9.7%
|
|
|
|
3.3%
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
THREE
MONTHS
|
|
SIX
MONTHS
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
ENDED
|
|
ENDED
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
JUNE
30,
|
|
JUNE
30,
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
2017
|
|
2016
|
|
2017
|
|
2016
|
|
|
|
|
|
|
Reported FFO per
share
|
|
|
|
|
|
|
|
|
$
2.47
|
|
$
2.63
|
|
$
5.20
|
|
$
5.27
|
|
|
|
|
|
|
Add: Loss on
extinguishment of debt
|
|
|
|
|
|
|
|
0.36
|
|
-
|
|
0.36
|
|
-
|
|
|
|
|
|
|
Comparable FFO per
share
|
|
|
|
|
|
|
|
$
2.83
|
|
$
2.63
|
|
$
5.56
|
|
$
5.27
|
|
|
|
|
|
|
Comparable FFO per
share growth
|
|
|
|
|
|
|
|
7.6%
|
|
|
|
5.5%
|
|
|
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SOURCE Simon